Elon Musk can proceed with offering cash giveaways to registered voters in swing states, as per a ruling by Pennsylvania state judge Angelo Foglietta.
The giveaways, facilitated through Musk's political group America PAC, are under legal scrutiny for potentially violating election laws, a charge Musk denies.
Philadelphia District Attorney Lawrence Krasner filed a lawsuit to halt the $1 million prize distribution, claiming it constitutes an illegal lottery.
Despite this, the legal proceedings are paused as a federal court decides whether to take the case.
The giveaways require participants to sign a petition and provide personal data, a practice raising legal and ethical concerns.
The initiative covers battleground states including Pennsylvania, Georgia, and Arizona.
Musk's team contends the lawsuit aims to obstruct the electoral process.
Pending federal court decisions, the matter might return to state court.
Allegations include violations of consumer protection laws due to misleading information.
The legal contention also follows intensified online threats against Krasner, linked to Musk's social media activity.
Federal law prohibits financial incentives for voter registration, and legal experts suggest the legality of Musk's actions is uncertain.
Potential legal repercussions for Musk include fines and imprisonment if found in violation of election laws.